Unpaid taxes could disqualify companies from doing business with Norwalk

By ROBERT KOCHHour Staff Writer

Published
2:30 pm EST, Friday, November 14, 2014

NORWALK -- Any unpaid debt to the city -- regardless of the amount -- could disqualify a company from doing future business with the city of Norwalk.

After discussion Thursday evening, the Common Council's Finance/Claims Committee forwarded the proposed new purchasing procedure to the Ordinance Committee for consideration.

The recommendation to take into account monies owed to the city when considering a lowest responsible bid, without specifying the amount of money owed, generated the most discussion.

"Presently, the way we treat our taxpayers, if you have delinquent motor-vehicle taxes, you don't get a registration renewal, regardless of the amount, you don't get a beach permit, regardless of the amount. You can't get a health permit, regardless of the amount," said Lisa Biagiarelli, the city's tax collector. "So we decided to just go with the concept of being behind."

Earlier, Councilman David T. McCarthy, a member of the committee, said a small, unpaid parking ticket could be grounds for disqualifying a company's bid.

"The way I read this, if somebody got a parking ticket yesterday, they could be considered not a responsible bidder," McCarthy said. "I know we likely wouldn't do something like that but …"

Councilman Bruce I. Kimmel, committee chairman, agreed but suggested that such a scenario likely wouldn't result in a qualified bidder being disqualified.

"To me, it would be foolish to literally exercise the letter of the law," Kimmel said.

Otherwise, a $60 parking ticket could disqualify a company that submitted a low bid, which could save the city and it taxpayers $60,000, according to Kimmel.

Kimmel did ask that the city's law department to examine language specifying that a bid or contract be "in the best interest and public interest" of the city.

"I think it's a little bit, in my layperson's mind, a little sloppy and could be dragged in the wrong direction by its generalities," Kimmel said.

The proposal to not do business with companies that owe the city money comes after experiences with Grasso Construction Co.

Last month, the council terminated an $887,275 paving contract with the company over delinquent taxes.

Biagiarelli said at the time that The Original Grasso Co. owed the city roughly $90,000 in delinquent taxes as of several weeks earlier.

The council now has hired Deering Construction, Inc., also of Norwalk, to perform the paving work for a cost not to exceed $991,822.

Daniel M. McCabe, attorney for Grasso, on Friday described the committee's effort as "good business practice" and "responsible government." But he rejected that it should be applied to his client, which he noted underwent reorganization after filing for bankruptcy.

"They got it wrong in this case because they tried to tag a bankrupt company's obligations with a new company that has no responsibility for the debts of the old company," McCabe said. "The city has given a substantial amount of work to the new Grasso entity. They've performed very well, and the citizens of Norwalk have benefited from the excellent pricing Grasso has given the city."